Kuwait Considers Privatising Oil Companies

Undersecretary Khalifa Hamada announced to the press that the Kuwaiti government were considering privatising oil service operations and currently a study is being carried out to decide what can and cannot be offered.

Kuwait is the home of the massive Burgan field which has an estimated production life of another 30 years. Though the amount of oil still under the sand of the country is a little vague there is small doubt that investment at the right price would yield a comfortable profit.

Hamada stressed that production facilities were not part of the deal and so there will be no loosening of the grip held by the Kuwait Oil Company.

Kuwait, which is the 10th largest producer of oil also possesses considerable gas production capacity, however, the drop in oil prices has given rise to concerns about the budget deficit. It is believed that the selling of operations not central to oil production will create revenue to offset a disappointing year.

It is quite possible that a recent similar move by Saudi Arabia has prompted this latest announcement from Kuwait.